Attached is the working budget document.  It starts with a Summary of the General Fund and shows its total expenditures and fund balance, followed by the detail pages for each department of the General Fund.  Each of the funds following this same format.

Reading from left to right you will see the account number, account title, 2017-2019 actuals, 2020 Budget (adopted), 2020 Projected (the revised budget for 2020), 2021 Budget (proposed), 2022 Budget (estimate) and 2023 Budget (estimate).

The General Fund (101-115) is the first fund.  Beginning Fund Balance is shown as the first revenue line.  Revenues are shown at the beginning (top) of each fund sheet, subtotals are shown for each major segment of revenue.  Expenses follow revenues, these are separated into departments (Police, Admin, Public Works).  Department line item expenses are also subtotaled into major type (Personnel, Contractual Services, Commodities, Capital, Debt Service, Transfers).  At the end of each fund is the Ending Fund Balance line.  As we review each fund we will highlight the estimated ending fund balances and provide an explanation for those that may reflect a negative balance.

Please make notes as you review and have questions. We recognize that this document will not answer all questions and we plan to provide plenty of explanation during the presentation.  We have developed the document in excel and staff has included comments in cells to serve as a detail in many instances which we will review with you, but we are unable to attach to this staff report.

Property taxes for 2021 through 2022 are based upon a constant 28.531 mill rate.  Staff reviewed the assumptions concerning assessed values at the prior workshop. Because the City uses General Fund resources to pay for capital, the mill levy is a key component to being able to fund capital on a pay as you go approach.  Reducing the mill levy will reduce funds available for capital funding, this will push back the planned date for projects.

Personnel costs reflect a 4.25% allowance for merit based pay increases as well as increased health insurance premium costs.  There are no staffing changes reflected for 2021 aside from part time staff to operate the pool in house (reflected in the Aquatic Center Fund).

Attached is the current version of the capital improvement plan.  The expenses associated with CIP items in years 2020 through 2023 are reflected in the appropriate line item of the budget.  Staff will point these out during our review.

Capital improvements planned at the Aquatic Center and R Park are reflected in the Special Infrastructure Fund, which is the fund reflecting the resources from the GO Bond issue anticipated in the fall of 2020.

The Community Center Fund reflects both operational and capital costs.

Revenues have been estimated conservatively (we expect they will be higher than budget).  Expenses continue to be refined to be closer to our actual history, but again conservative (we expect they will be lower than budget).

Each mill of the City levy equates to $101,000 of revenue ($96k in property tax and $5k in shared sales/use tax from the county).  In order to fund the capital improvements contemplated in the CIP on a pay as you go approach the mill levy is shown remaining constant. Phase 1 and 2 of R Park improvements are shown in 2020 and the pool improvements are shown spanning 2021 and 2022.  These are major projects and along with other 2021 Objectives will bring down the balance in this fund over the next two years.

The Combined Special Street and Highway Fund will also see a reduction in fund balance over the 4 years budgeted due to substantial street projects contemplated.

The ending fund balance for each of our funds remains positive through the 2023 estimates.  In addition the ending fund balance benchmarks are being met through 2023.  The 2020 Projected Budget reflects revenue declines previously discussed with Council as a result of the COVID-19 pandemic.  2021 revenue projections have also been adjusted to reflect lingering pandemic impacts.